Pakistan’s telecom sector is facing growing cost pressures as a sharp increase in fuel prices—driven by ongoing geopolitical tensions and disruptions in global oil supply routes—pushes operational expenses higher across the industry.

In response, two major telecom operators have approached the Pakistan Telecommunication Authority (PTA) requesting an increase in mobile and internet tariffs to offset rising costs.

Sources indicate that the steep rise in diesel prices is a key concern for the sector, as telecom networks depend heavily on diesel-powered generators to keep cellular towers running, particularly in remote locations. Frequent power outages and load shedding in several parts of the country have further increased reliance on backup power systems, significantly raising operating costs.

In their request to the regulator, telecom companies argued that escalating fuel expenses are making it increasingly difficult to maintain service quality and ensure uninterrupted connectivity. They warned that without an adjustment in tariffs, sustaining operations in electricity-deficient areas could become challenging.

The companies also highlighted that any further increase in electricity tariffs under the Fuel Price Adjustment (FPA) mechanism would add additional financial strain, further justifying their demand for revised mobile and internet charges.

Diesel prices in Pakistan, which stood at around Rs 270 per litre earlier, have surged sharply in recent weeks, reaching Rs 385 per litre after multiple increases, with earlier peaks going as high as Rs 520 per litre in April. The rise has already forced transport and logistics operators to revise fares, adding to broader inflationary pressures.

PTA is expected to review the applications, with early estimates suggesting that mobile and internet tariffs could potentially rise by 10 to 15 percent, depending on the outcome of the regulatory assessment.